A fleeting surge in popularity for the Trump family-themed tokens has concluded with investors experiencing substantial financial setbacks. The official memecoins for U.S. President Donald Trump and First Lady Melania have plummeted by as much as 60% within the past 24 hours, largely due to aggressive profit-taking following the recent inauguration.
Futures linked to these tokens have similarly disappointed traders, with liquidation losses nearing $70 million for those who anticipated price increases.
The market activity surrounding TRUMP and MELANIA tokens has been far from insignificant. TRUMP saw trading volumes surpass $19 billion in just one day, while MELANIA recorded exchanges worth $4.5 billion. For context, major cryptocurrencies like Tron's TRX and Cardano's ADA witnessed less than $4 billion in trading during this same period, highlighting the intense interest in the Trump-themed assets.
On the trading platform Moonshot, which was one of the earliest to introduce TRUMP tokens to retail investors, both trading volumes and prices have stagnated. Dune analytics by @Seoulcalibur.eth reports a decline in trading volumes from an average exceeding $6 million on January 18-19 to just over $1 million in the last day. Expectations were high that Trump might reference cryptocurrency in his inaugural address, particularly a strategic bitcoin reserve, but his silence prompted Bitcoin to slip from a peak of over $109,000 to just above $101,000 during Asian trading hours on Monday.
Despite current circumstances, traders remain hopeful for an imminent pro-crypto policy direction from the Trump administration, particularly emphasizing Solana's SOL tokens. According to Singapore's QCP Capital, the association of $TRUMP with SOL is a strong endorsement, potentially accelerating SOL's ETF approval. The firm notes that an increase in media coverage following such token launches could drive retail investment.
The introduction of Trump's memecoin is drawing attention from both meme-driven retail investors and significant institutions, as it reinforces the president's favorable position on cryptocurrency. Institutional investors are eagerly anticipating tangible pro-crypto policies, which could profoundly impact the economic landscape, the firm concluded.